The price of maize is likely to remain strong due to increasing demand from the ethanol industry, as well as stable domestic production levels. The demand for maize in ethanol production has been on the rise since last year, and this trend is expected to continue in the current year.

However, maize production has not been increasing as rapidly as expected, which could contribute to sustained high prices.

For the 2024-25 season, the minimum support price (MSP) for maize is set at Rs 2225 per quintal, and the price in most major producing states is either above or close to this value.

While this is advantageous for farmers, the poultry industry is expressing concerns as the higher maize prices have increased their costs significantly.

In comparison, in 2020, maize prices in Bihar had fallen to Rs 1100-1200 per quintal, well below the MSP of Rs 1850 per quintal.

The price has now nearly doubled, which is favorable for maize producers. Farmers are responding positively to the higher prices, as evidenced by the good sowing interest.

In December 2024, over 16 lakh tonnes of maize were harvested domestically, yet prices remained firm, reflecting the strong industrial demand.

The government has set a significant ethanol production target for the 2024-25 marketing season, with oil marketing companies allocated a quota of 837 crore liters of ethanol,

of which more than half (431.10 crore liters) will be sourced from maize. This substantial share underscores the ongoing strong demand for maize, which is expected to persist.